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Financial Arbitration for Catholic School in Springfield, MA

Friday, September, 14, 2012


A Catholic School is currently undergoing financial arbitration over the kind of disaster usually deemed an “act of God”.

On June 1, 2011 a tornado ravaged Cathedral High School in Springfield, Massachusetts. The school was still considered new at the time, but it has since sat empty and unused since the devastating act of God.

The Long Wait for Contract Arbitration

Even worse for local students, financial hearings between the diocese and its insurer didn't start until the beginning of this month! The hearings are to resolve the issues between the Diocese and the insurer over what should be done with the school.

The insurer believes $15 million should be spent to repair the building while the Diocese believes the school should be entirely rebuilt. Such a project would cost about $70 million. As you might guess, the insurance company is not going to give this one up without a fight.

Arbitration Finally Underway

After more than a year of waiting, many are happy that the arbitration hearings are finally getting started. There are eight total hearings scheduled: three in September and five in November.

The arbitration committee will be made up of three members: one chosen by the insurance company, one chosen by the diocese, and one agreed upon by both.

Hopes are up that the panel will reach a decision by the end of the year. No matter what the decision, there are many students who will be relieved to get their high school back. In the meantime, they will have to keep sharing a now crowded middle school in Wilbraham, MA.